Which of the following is NOT a barrier to entry for a monopoly to exist?
a. The critical resource is owned by a single company
b. The costs of production make a single producer more efficient than many producers
c. International trade agreements restrict production domestically
d. The government grants exclusive rights to a single producer
Ans: c. International trade agreements restrict production domestically
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The purpose of expansionary monetary policy is to increase ________.
A. real GDP B. the GDP gap C. interest rates D. the inflation rate
Output supply is increasing in the interest rate because
A) labor demand is increasing in the interest rate. B) labor demand is decreasing in the interest rate. C) labor supply is increasing in the interest rate. D) labor supply is decreasing in the interest rate.
Moral hazard occurs when contracts are written in such a way that
A) the interests of agent and principal converge. B) the interests of agent and principal diverge. C) agents will wish to maximize the principal's utility. D) production and risk-bearing efficiency are achieved.
In the late 19th century, the chief railroad terminus was:
a. New York. b. Chicago. c. New Orleans. d. St. Louis.